January 19, 2004

In an e-mail response to questions from Reuters, spokesman David Krane said, "Google has a number of projects in the works to test monetization in various scenarios.

"In fact, Google's AdSense contextual ads are already used in a number of e-mail newsletters," he said.

Google has for years said it would not turn its site into a full-service Internet portal like Yahoo or MSN. However, since it opened in 1998, Google has added portal-style discussion groups and is testing a comparison shopping site called Froogle, as well as a news site.

Google late last year purchased rival Sprinks, which had technology to deliver ads to e-mail as the messages were opened. Such real-time ad serving is important because it keeps ads fresh and insures that Google will not be giving away free ads or delivering ads nobody will see, industry participants said.

Kanoodle, a small privately held search company, in the coming weeks will roll out its own e-mail advertising product as part of its deal with CBS MarketWatch.com, Lance Podell, Kanoodle's president of search and content, told Reuters.

Under that deal, "sponsored link" ads will be served to MarketWatch's opt-in subscriber e-mails, including newsletters.

Google already knows how to deliver its sponsored link ads -- which are in the form of Web links and appear on the perimeter of Web pages -- to e-mail newsletters and content sites.

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